Amazing LaMont: My WF Bank Story – Warning: Mouse Traps
Not your usual bank story.
My Dinar is held in a partnership and I’ve been looking into business accounts before the exchange; so I visited a business banker today at Wells Fargo. I told him I was expecting a large inheritance that would go into my partnership.
I said, “Before we begin, I want to inquire about business loans.” I went on to tell him the requirements I’d be looking for in a loan.
“I’m going to want a business signature loan,” I said, “with no collateral, in the amount of $5 million or more that I will be using to place into investments.
While my credit rating is not top tier because some of these investments are a bit of a risky gamble, I still want a super low interest rate of one tenth of a percent a year or less.”
At this point, the banker’s face tightened as he stifled a little snicker.
I continued on intently, “Further, this is to be an indefinite time loan with no repayment schedule, but it will be a callable loan in small portions.
If you want any large repayments, you will have to give me at least 7 days notice; and that’s only if the money isn’t still tied up in an investment or completely lost.”
His eyes widened in astonishment at my gall to even ask such a thing. Undeterred, I demanded, “If the money is lost, I want to be shielded from any fiduciary duty or responsibility.
But don’t worry, I’ll get an outside insurance policy that’ll secure a small fraction of the loss for you; however it may take a few years for you to get paid.” The snicker had now grown to a chuckle.
“When we write up the loan Agreement, only you will sign,” I instructed; “I don’t ever sign anything. Further most of the Agreement will not be in the signed documents, but only included by reference.
Oh, and I get to change the referenced Agreement anytime I want, but I’ll let you know by posting any changes in an obscure part of my business website.”
People started to look our way as the banker was now in a full belly laugh.
I eyeballed him and shook my finger at him as I declared, “Oh, and to guarantee your performance under the agreement, I am placing a lien on your funds so I can freeze them if there are questions about any of the transactions.
And lastly, I want you to pay me a small monthly sum for the privilege of lending me money.”
The banker’s head popped back in full hysterical laughter as a tear rolled down his face. “Who in their right mind would ever agree to such demands?” he asked.
“Exactly,” I replied. “But that is precisely what the bank is asking of me in this Business Account Agreement,” I said as I held up the pamphlet.
The laughter faded as did the color in his face. He looked me squarely in the eye with the deadpan of realization and said, “You are exactly right.”
Yes, this is a true story that happened today. I have read and examined the “included by reference” pamphlets line by line, from cover to cover, and the website notices. What a scam these banks are.
The mouse traps appear to have been set by the rats. And these only scratch the surface of the one-sided clauses contained in the terms of the agreement.
Extracted directly from the one-sided Wells Fargo Business Account Agreement:
Headings do not constitute a part of this Agreement.
Each of these provisions stands alone.
(Important: What these two buried sentences mean is that even though a clause may be under a subject heading and appear to only refer to the subject under that heading, the sentence stands alone to be interpreted as its own provision; therefore,)
You agree to:
· Complete and return to the Bank any documents requested of you.
· In all respects cooperate fully at your expense with the bank in its investigation of your claim of an unauthorized transaction.
The bank will have the right to reverse any credit made to your account if you fail to sign such documents…
The Bank will have no liability to for failing to detect a forgery…
…if you have indicated that more than one signature is required in connection with an item drawn on your account, the Bank will have no liability if a transaction is conducted on or through your account contrary to the signature requirements.
To secure your performance of this Agreement, you grant the Bank a lien on and security interest in your account and your accounts with any affiliate.
The rights granted in this subsection are in addition to and apart from any other rights, including any security interest that you may have granted to the Bank.
The Bank’s relationship with you concerning your account is that of debtor and creditor; no fiduciary, quasi-fiduciary, or special relationship exists between you and the Bank.
(But also note this important statement.)
In addition, the Bank may agree in writing to waive a provision of this Agreement including without limitation a fee (a “waiver”). The Bank may, upon written notice to you, revoke any waiver.
(The question is, “Who has authority to waive a provision?”)
Emtp2210: A very good point of discussion. Beware of the traps and do take your time with the documents.
ColoradoLady: AmazingLaMont, thanks so, so much for truly sharing more information from the "Other side" of financial transactions as they so often are in realistic written form....
I'm sure so many people start to read this as a really funny story only to realize that yes...it is indeed true and what most of our banks ask of us...........
I can only say once again...be aware, be cautious of what you read, read it again and again until you truly and completely know what you are signing....
Don't be pressured by anyone, don't let some person that you don't know look across a desk and intimidate you into signing anything.
You have all the time in the world, to make your decision.......take the time....read the content....make sure you understand what you are signing........................